Jakarta's light rail system under construction (Photo:https://www.thejakartapost.com/)Jakarta (VNA) - Indonesia’s economy is predicted togrow by only 2.5 percent this year, the lowest over the last four years and a 50-percent decline compared to2019's growth rate.
According to the Asian Development Outlook 2020 published recently bythe Asian Development Bank (ADB), the COVID-19 pandemic that comes with falling commodity prices andfinancial market turmoil will cause serious impact on the Indonesian economy,as well as the world's this year.
The situation is exacerbated by theweakening economies of several trade partners of Indonesia, the report said.
In a press release, Country Director of ADBin Indonesia Winfried Wicklein said althoughIndonesia has a strong macroeconomic foundation, the COVID-19 crisis haschanged the direction of the country's economy, with worsening externalsituations and weakening domestic demand.
Winfred estimates that the Indonesian economy can gradually return to itsgrowth track in 2021 if the government effectively takes decisive actions toaddress health and economic impact of the disease outbreak.
Winfred estimates that the Indonesian economy can gradually return to itsgrowth track in 2021 if the government effectively takes decisive actions toaddress health and economic impact of the disease outbreak.
ADB is one of the organisations thatlowered Indonesia's growth forecast for this year due to the COVID-19 pandemic.Earlier, the World Bank said that the country’s economy will be at only 2.1percent in 2020 if the pandemic is put under control in June.
Meanwhile, the Indonesian government recently forecast that its yearly economicgrowth is likely to sit at only 2.3 percent./.
Meanwhile, the Indonesian government recently forecast that its yearly economicgrowth is likely to sit at only 2.3 percent./.
VNA
